Essay about Skip Hop Company Supply Chain Management Sytem

2731 Words Jun 23rd, 2014 11 Pages
Introduction
When in 2003, two new parents searched for a diaper bag that looked great and worked well, they found nothing. So they invented something. Almost decade and hundreds of products later, Skip Hop grew into a well-recognized global brand that is known for its innovative, great design and the highest quality baby products.
Even though company has only 50 employees and is considered a small company, it profited $7 million last year alone and has more than 60 retail locations all over the globe. In order to compete in a very tough baby product business against lager companies like Fisher-Price company has to have a smoothly working supply chain. Despite the fact that Skip Hop has no
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Also, I think that company will benefit from growing manufacturer base (supplier base).
Benefits will include:
Competition will force manufacturers to work better and more efficient;
Uninterrupted product supply that is achieved my spreading the risk of supply interruption and that will insure that company will have of product, despite of possible quality problems, strikes or holidays;
Increased capacity will make sure that demand will not exceed capacity of single manufacturer;
Furthermore, company definitely will benefit from manufacturer evaluation and rating system. This will help to catch “red flags” before they will lead to serious problems.
Forecasting
In operation element of Supply Chain, the demand forecasting is very important because it helps companies estimate how many products they need to produce in order to satisfy the demand of customer. Theoretically, a good estimation can help companies achieve their goals for productions' quality and quantity as well as reducing costs of keeping safety stocks. However, the expectation of a perfect matching between the actual demand and forecast demand obviously is not practical and does not even exist in real life. In other words, there are always variances between the actual demand and the forecast demand. Forecasting is not an exact science, and there is no perfect forecasting technique. The forecasters try to minimize this difference as much as they can because a

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